STOCKS
Sell-off in property developers’ bonds continue amid growing concerns about mortgage defaults
Bonds issued by Chinese property developers continue to plunge on Friday amid growing market concerns about mortgage defaults.
China’s electricity generation rose 1.5% on year in Jan – Jun, vs previous 3.3% drop
China’s electricity generation reached 709 billion kWh in June, a rise of 1.5% from a year earlier, compared to 3.3% drop in the previous month, according to data from the National Bureau of Statistics. Average daily electricity consumption was 23.6 billion kWh in June.
BYD shares surge on strong first-half earnings, Goldman Sachs adds it to Conviction Buy List
Shares of Chinese automaker BYD Company stage a strong rally on stronger-than-expected first-half earnings. Its Shenzhen-listed shares surged more than 7% to 346 yuan per share and Hong Kong-listed shares jumped nearly 5% to HK$296.8 in the morning session on Friday.
China’s crude oil output up 3.6% on year in June; imports down 10.7%
China’s crude oil output reached 17.19 million tonnes in June, up 3.6% from a year earlier, in line with the growth in May, according to data released by the National Bureau of Statistics.
Chinese property developers’ total funding tumbled 25.3% on year in first half
Chinese property developers’ total funding reached 7.68 trillion yuan in the first half of the year, sliding 25.3% from the same period last year, according to data released by the National Bureau of Statistics,
China property sales fell 22.2% on year in Jan – Jun
China’s property sales by floor area reached 689.2 million square meters in the first half of the year, sliding 22.2% from a year earlier, compared to 23.6% drop for the first five months, according to the National Bureau of Statistics.
China real estate investment down 5.4% on year in Jan – Jun
China’s real estate investment declined by 5.4% year over year in the first half of 2022, compared to the 4% drop for the first five months of the year, according to the data released by the National Bureau of Statistics.
China fixed-asset investment up 6.1% on year in first half
China’s fixed-asset investment grew by 6.1% y/y in the first half of the year, according to data released by the National Bureau of Statistics, compared to expected 5.9% growth and the 6.2% gain for the first five months of the year.
China’s industrial output up 3.9% on year in June, vs previous 0.7% growth
China’s industrial output grew 3.9% in June from a year ago, according to data released by the National Bureau of Statistics, compared to expected 4.5% growth and the 0.7% growth in the previous month.
China retail sales up 3.1% on year in June, vs previous 6.7% drop
China’s retail sales grew 3.1% in June from a year ago, said the National Bureau of Statistics, compared to expected 0.5% drop and the 6.7% fall in the previous month.
China Q2 GDP grew 0.4% on year, vs previous 4.8%
China’s GDP grew 0.4% in Q2 from a year earlier, according to data released by the National Bureau of Statistics, slowing sharply from 4.8% growth in the previous quarter. That missed expectation for 1% growth by analysts in a Reuters poll.
Chinese property developers’ dollar bonds see indiscriminate sell-off amid growing concerns, many trading below 30 cents
The sell-offs in US dollar bonds issued by Chinese property developers deepen this week amid growing concerns about financial health of the sector. Notably, bonds issued by developers widely viewed as financially healthy such as Country Garden, CIFI Holdings, Sinic Holdings also tumbled across the board.
China’s home demand to decline average 2.5% a year through 2035 – research
Demand for residential properties in China declined in 2021 and will continue falling through 2035 as the demographic dividend wanes, according to Beike Research Institute.
Chinese banks rush to disclose mortgage exposure to soothe market nerves after home buyers refused to pay mortgages
Several Chinese banks scramble to disclose their exposures to mortgage defaults and stressed the risks are “controllable,” after homebuyers across 18 Chinese provinces refuse to pay mortgages as the properties they bought were left unfinished due to developers’ liquidity difficulties.
China’s Tianqi Lithium expects first-half net profit to skyrocket 110 – 134 times
China’s Tianqi Lithium, one of the world’s largest lithium chemical producers, expects its first-half net profit attributable to shareholders to reach 9.6 – 11.6 billion yuan, skyrocketing 110 – 134 times from the same period last year, the firm said on Thursday.
Chinese regulators held emergency meeting about suspended mortgage payments – report
China’s Ministry of Housing and Urban-Rural Development, financial regulators and banks held an emergency meeting this week to discuss the issue of suspended mortgage payments, as more and more homebuyers in China refused to pay mortgages on unfinished projects, Bloomberg News reported cited people with the knowledge of the matter.
Agricultural Bank of China initially recognized 660 mln overdue mortgages concerning properties with delivery delay risks
Agricultural Bank of China, one the country’s Big Four state-owned lender, said that it initially recognized 660 million yuan in overdue mortgage balance involving property projects with risks of delayed home delivery.
China Construction Bank said risk of property projects with possible delivery delays controllable
China Construction Bank, one of the country’s Big Four state-owned lenders, said on Thursday that its exposure to property projects whose construction has been suspended and home deliveries delayed is relatively small and the overall risk is controllable.
Embattled Evergrande’s EV unit reportedly selling first model below cost to boost sales
Embattled property developer China Evergrande Group’s carmaking unit is reportedly selling its first electric vehicle below cost price to boost sales, reported newspaper International Finance News under the state-run People’s Daily.